How does an investor craft the perfect investment portfolio for themselves? An ideal investment option would be to choose investments with attributes of higher returns and lower risks. Unfortunately, this flawless model is tough to create. More often than not, investors need to spend time to develop strategies that offer them an optimal investment portfolio that balances out both returns and risks.
Let’s take a look at certain investments towards which most investors tend to gravitate. The most common type of investment is stocks and shares. Stocks are equity instruments representing an ownership interest in a corporation and are traded on stock exchanges. Investors receive earnings in the form of dividends which depend highly on the share price and the performance of the company. As stock and share prices may fluctuate over time, earnings are subject to risks associated with the market and economic conditions. This makes this investment option highly volatile.
Another alternative to stocks would be an investment in bonds, specifically gold bonds. Unlike stocks, gold bonds offer a fixed rate of return throughout the investment period. Investors are guaranteed rates of returns up to 10% per annum and the capital is paid back in full to the investor at maturity. Gold bonds are safer for conservative investors who wish to capitalize on gold ownership without the hassle of higher fees or storage costs.
Still unsure whether to invest in stocks or gold bonds? When in doubt, we recommend you diversify your portfolio to ensure stability in your investments.
For more information on gold bond investments in UAE, get in touch with our team at the Bank of Bullion. Our team of experienced consultants is here to guide you through this best investment option in the UAE and support you with investing through our regulated trustee.